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Cryptocurrencies as a whole are nothing new. Bitcoin, the first cryptocurrency, has been around since 2009. It was created as a decentralized currency without any government influence. Inspired by Bitcoin, nearly 10,000 cryptocurrencies have been created, as of January 2022. Although cryptocurrencies are easy to make and anyone can do it, it is estimated that nearly 90% of the cryptocurrency market is made up of the top 20 coins. encrypted. This does not include non-replaceable tokens. These add another layer to the already complex world of digital currencies.
One of those cryptocurrencies is Avalanche and its currency, AVAX. Although the avalanche has been around for a little over a year, it looks like this platform and coin may have what it takes to become a part of the top 20 cryptocurrency. Read on to find out more and give your opinion.
What is Avalanche Cryptography?
The Avalanche platform and AVAX coin were launched in 2020 by Ava Labs. Avalanche is a smart contract platform that uses the Proof of Stake protocol. Claiming to have the fastest and most secure cryptocurrency platform available, and compatibility with the Ethereum blockchain and the blockchain as well, Avalanche will be a tough competitor to Ethereum. In addition, anyone can use the Avalanche platform to create their own cryptocurrency.
Avalanche is designed to be a network of thousands of subnets to support a highly stable currency. The idea is to have a decentralized and diverse interconnected network of blockchains made of many different people and places.
Avalanche Quick Overview
On the second page of their white paper on the Avalanche platform, Ava Labs stated that they intend to make Avalanche a comprehensive platform where anyone can connect to the network, while being scalable, flexible, decentralized, and most importantly secure. There are currently 220,286,577 AVAX coins in circulation, with a maximum of 720 million.
The avalanche is known for having one of the fastest transaction rates and fierce competition on the Ethereum platform. It is a smart contract platform, which means that developers can create self-executing software that handles sales and purchase agreements.
How is Avalanche different from other crypto platforms
AVAX is designed to compete directly with Ethereum. The latter was designed and released when there were much fewer people using cryptocurrencies, so there were fewer transactions. The protocol issue was not keeping up with transactions, but now Ethereum needs two layers to handle all transactions on the platform.
Avalanche can operate at the Internet scale because it has three blockchains operating under a single layer protocol. This significantly increases the amount of transactions an avalanche can handle simultaneously compared to Ethereum, and since it is in a single layer, it increases security as well.
An avalanche can bring time to finish — the time it takes a single transaction to process from inception to being irreversible — in one second. This is compared to transactions on the Ethereum platform which takes 1 minute per transaction. This also results in lower fees per transaction, as fewer resources are used.
Avalanche’s team, Ava Labs, even partnered with consultancy Deloitte to improve FEMA funding. Deloitte will use the Avalanche blockchain to support disaster relief programs.
How does the Avalanche Platform and AVAX Coins work?
The avalanche’s fame is due to its three mass chains. Each blockchain has a function, rather than one blockchain to do everything.
How does the avalanche platform work?
The three block chains are:
- Exchange Series (X Series): Chain X is responsible for transactions and creation on the blockchain. This is where assets and deals are exchanged. As the stake protocol is proven, this is also where AVAX coins are generated.
- Contract String (C String): The C string is where the smart contract takes place. This is where developers can set up their decentralized apps. Ethereum contracts can also run on Series C, so existing Ethereum applications can be migrated.
- Platform Series (P Series): The P-chain is where the subnets are located, which is a blockchain that anyone can create. This is also where the validation takes place so that AVAX coins can be generated on the X chain.
How are AVAX coins and coins generated?
AVAX coins are the original tokens of the avalanche. Instead of using a Proof of Work algorithm to generate the coin, as Bitcoin does, Avalanche uses a Proof of Stake algorithm. Proof of Stake is less power consuming and potentially a safer way to generate coins.
Proof of Stake requires users to purchase a certain amount of coins, 2,000 AVAX for Avalanche, to participate in the consensus. These owners then become “verifiers” and are randomly selected to receive the coin, rather than competition-based mining to prove the working algorithm. This algorithm uses less power and is more accessible to people who are new to the cryptocurrency space.
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